London IB Pay- Because the figures i see are shit
Hi Guys!
As a prospective IB, I would like to know the pay in London at BB IB for FO jobs. Mainly for Analyst 1 and 2 and Associate 1,2 and 3 (if there is 3).
Dividing it up into Base, Bonus, Sign-up Bonus, and any other compensation would be greatly appreciated.
I've seen and calculated it to be less than 100000USD per year (Bonus Combined) I used 70000 GBP Base and 40000 GBP Bonus as averages. This comes out to be less than 100,000 USD. US NY based IBs earn 125k base and a rough 50-70% average for the bonus the total comes out to 187500-200,000+ USD, let's say there is a 40% tax rate Net pay is 112,500-127,500 USD. CONSIDERABLY HIGHER THAN LONDON, CONSIDERING THAT LONDON IS SO MUCH MORE EXPENSIVE!!!!
If possible, please let me know which tax brackets these salaries come under so i can calculate net pay.
Thank you so much!
Hi, incoming 1st year analyst at a BB here. You can find about London IB compensation in a recent London salary increase thread on this forum. You can also look for Arkesden Partners IB compensation report, updated annually, which gives you salary for analyst to VP grades across all BBs.
I am not a UK national but I think you can find about taxes with a simple Google search "UK gross to net" which will provide you with helpful simulators.
Hope this helps
The british pound is basically at an all time low vs the dollar (1.25?) due to Brexit and the current war situation, so of course when you convert London comp into USD it sounds low. But it's not that relevant given everything in London is priced in GBP, not USD. Basically it means London is cheap for American tourists right now. When I started working in London the pound was like 1.80 and all-in comp was "higher" than in the US when expressed in USD, but once again, the most relevant thing is that it was adequate for the cost of living locally.
The FX rate isn't going back to 1.80 mate.
Lots of stuff to unpack here. Let's compare AN1 in London and across the pond. Firstly, Brits are generally a year younger than their American counterparts: an AN2 in London will be the same age as an AN1 in New York. An important consideration if you're looking to max earnings in your early 20s and you're internationally mobile.
London: £70k base + £35-£55 bonus = $140 - $160k USD at a £/$1.30 rate.
New York: $110k base + $55-$75 bonus = $165 - $185k USD.
Of course, this excludes the outliers: the bumper year, the fact that CVP pays well over $200k+ in New York, and PJT pays their top bucket AN1 in London close to £150k after recent bumps.
In general, an AN1 in New York can expect a 20% nominal wage premium over their London counterpart (who is probably a year younger). Tax differences are immaterial - indeed, you benefit from the favorable £20,000 tax-free ISA in the U.K. Living costs probably shrink the differential a bit. When you consider that most American jobs pay a 50% premium over their British counterparts (in software engineering, consulting, tech sales etc.), British bankers are actually doing quite a bit better than their compatriots.
EB AS3
Base: £130k LDN vs $250k NYC
Work: 5 days office LDN vs Mon&Fri WFH NYC
Is the 250K in NYC only base or include with bonuses?
Base only - bonuses similar for both as a % of respective salaries (100% +/- 20%)
Expect pay in London to be lower, a lot lower. My friends who are mostly VPs/Ds or even MDs all complain that the pay in the UK is SUBSTANTIALLY lower than their US counterparts. In some cases, 50%. A friend of mine was in the UK on an ex-pat package, meaning they had originally worked in the US for the bank and then transferred to the UK, but got to keep their compensation levels. When their expat package ran out, they were forced to take a compensation hit to reset to local standards. This is on a gross level, ignoring the differences in taxes (which is higher in London). If you want to maximize your earnings, stay in the US… if you want a better WLB, you go to Europe.
Is this on an relative FX basis (at 1.3 $/GBP) or that bonus is lower as a % of base as they progress?
NYC pays in USD 1.9x the GBP salary when the current FX is 1.25x
Do you think it's possible to transfer from London to NY? or while studying for UG in London get a IB job in NY?
It's possible to transfer once you're in the company and you prove yourself. It is a bit more complicated while you're studying as some companies would not be willing to sponsor your work visa.
Is no one going to comment how this guy added 70+40 together and got to less than 100k somehow?
Also now seen he said London is "so much more expensive" than NYC. Where could you possibly find a source that says that? OP if you're going to be outraged, at least sense check.
100k USD at that, sure hope this guy never ends up on an FX desk
OP isn’t wrong about pay being less in London. However, his comment on COL is dead wrong.
Pay combined with COL, it’s clear workers in London (and Europe in general) make significantly less (anything over 20% difference is objectively significant, especially when considering some people will only switch jobs for a 20% premium).
Pay in London is worse but at least our public transport is safer.
LDN pay is actually pretty closely aligned with NYC pay. The problem is that the UK charges ~15% employer NICs. This is tax charged to employers in addition to salaries and bonuses. So if A1s receive gross pay of £70k salary + £45k bonus = £115k total comp, the amount expensed by the employer is £115k * ~1.15 = ~£132k = ~$172k at a 1.3x FX rate, which is not too far off NYC pay.
Dont NY bankers make around 110 Base (I don't remember what the base changed to after the recent increase) and a rough 60% bonus would put total comp to 176 USD. I believe NY bankers might make closer to 185-200 in a good year. Also correct me if I'm wrong, but taxes in London are much higher right? total comp would probably get slashed down by 40%. I wish there was some way to study in London but get a job in NY, that would be ideal.
Bonus % are the same across the board -- £70k vs $110k is the relevant comparison metric.
£70k = $90k under the massively depreciated GBP now. In summer (July 2021) £70k was $100k. Even when GBP was = $1.42 (July 21), local prices were also still ~15-20% lower.
The purchasing power of both is fairly identical. Taxes also are roughly the same, not sure why you think otherwise. As you become senior, every £/$ is taxed at around 45% in NYC and London.
London also tends to get allocated more holidays (eg around 30+ if you include bank holidays). If you choose not to take them, you get the amount paid back as well. Most US analysts get 15 days, so 15 days extra * (£70k/52/5)*15=£4k. Closes down the gap/ bridge even more... although of course actually taking your holiday days seems to me a better choice.
Qui aliquid molestias ipsa laudantium voluptas. Numquam numquam quidem aut provident enim. Tempora eligendi dignissimos quis libero.
Blanditiis dicta et sequi eligendi vel unde tempora ut. Delectus et qui molestiae consectetur. Aut sint et et. Quo voluptatem expedita et nesciunt numquam temporibus architecto quisquam. Eveniet ut quis debitis necessitatibus accusantium numquam omnis. Voluptatem dolor quos quod blanditiis.
Illo non nostrum fugiat explicabo est enim. Tenetur aut necessitatibus exercitationem. Quis earum cupiditate maiores qui consectetur qui tenetur.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...
Dignissimos pariatur illum et aspernatur ullam. Necessitatibus exercitationem natus aut et praesentium eum ex.
Fuga at et mollitia corrupti. Aliquam nihil reiciendis qui consequuntur animi modi voluptates ut.
Consequatur ratione repellat voluptatem numquam voluptatem rerum accusamus. Praesentium cumque soluta qui rerum officia quaerat. Ratione expedita nobis et tempora blanditiis.
Veniam nesciunt et repellendus. Sunt a a ex sed sed aliquid voluptatem tempore. Sunt vel mollitia dolorem dicta ad consectetur hic unde.